Edward Butterworth – GVAT needs to consider economic roots of social and ecological problems
GVAT has three action research teams looking for the roots of our social and ecological problems. I maintain that all these problems stem from our collective illusion that we are separate and unequal where the ultimate truth is that we are all parts, together with all life forms, of the whole that is the biosphere.
But there is another, less deep-seated root cause of our problems. It is called the Neo-liberal economic model. I say 'model' to emphasize that it is one model among many, albeit so well established that it is mistaken for reality itself. It is not. In fact its premises are questionable, are in fact starting to look very shaky.
This model was preceded by Keynesian Economics. This was kicked off at the Bretton Woods international conference after the end of WW2. Colonies were gaining independence. The UN was being created along with the IMF and the World Bank. Keynesian Economics levied high taxes on the rich which paid for social services and social housing provided by the government. It did seek economic growth which raised standards of living for everyone.
Then came the era of Thatcher and Reagan in thrall to the economist, Milton Freedman, who talked about 'supply-side' and 'trickle-down' economics and 'deregulation'. Governments were captured in the webs of corporations and cut taxes on business and the wealthy. Over the decades since then inequality has mushroomed to the point where absurdly rich men play at being astronauts while austerity has cut social services to the bone and poor people can't afford a roof over their heads. Meanwhile pollution rises in lock-step with economic growth, hitting global limits and making climate change into an existential threat.
My point of view is that if GVAT is to make a difference it will do so because its action research teams have developed holistic views of the problems we seek to address and have revealed the root causes of the problems we have identified. Such understanding can provide meaningful context to the concrete proposals that we make. Without such context our efforts could amount to window dressing, rearranging the deck chairs. We may not be able to address the root causes head on but our modus operandi will be affected by our common understanding.
Here are are some of the problems with Neo-liberal Economics most pertinent to GVAT.
The metric of economic wellbeing, GDP, is deeply flawed. e.g. it counts war, deforestation and automobile accidents as positive contributions to GDP.
It requires continuous growth, not recognizing that exponential growth in a finite system leads to catastrophe.
The great bulk of economic growth goes into the pockets of the already rich.
Corporations and governments turn a blind eye to externalities, the social and environmental costs of doing business, which are paid by this and future generations.
The economy relies on consumerism, the buying of products not really necessary for a good life. Advertising and planned obsolescence persuade people to buy more. The mining of materials, manufacture, use and disposal of commodities generates pollution at every stage, creating ill health and leading towards ecosystem collapse and climate breakdown.
There are many alternative economic models. Some that I know of are:
Eco-fees on everything. This would effectively stop the externalizing of environmental costs.
Gross National Happiness Index as an alternative to GDP
The Circular Economy advocating 100% recycling/zero waste
The Doughnut Economy balancing respect for global limits with meeting basic human needs.
There is much overlap in these models. It may be that the Doughnut model, with its simple visual representation, could provide an overarching system which includes eco-fees, GNH and 100% recycling.
I would like to participate in a conversation within GVAT about how these understandings relate to our mission. It may be that we are on the brink of a paradigm shift where the resistance to change, at the centre, breaks down in the face of overwhelming evidence that the conventional economic model is not working for the vast majority of humanity.
Edward Butterworth
Edward is a Co-lead of GVAT’s Mental Health and Addictions team, and is also active in GVAT’s Climate Justice team.
